SIDE-BY-SIDE COMPARISON OF HOUSE AND SENATE ECONOMIC DEVELOPMENT BILLS (2014)

Transcription

1 SIDE-BY-SIDE COMPARISON OF HOUSE AND SENATE ECONOMIC DEVELOPMENT BILLS (2014) Proposal One Stop Shop Web Portal House Proposal of Amendment to S.220 (Draft 1.1) Sec. 1. ONE-STOP SHOP WEB PORTAL (a) Purpose. The State of Vermont seeks to simplify and expedite the process for business creation and growth by providing: (1) a clear guide to resources and technical assistance for all phases of business development; (2) a directory of financial assistance, including grants, funding capital, tax credits, and incentives; (3) a directory of workforce development assistance, including recruiting, job postings, and training; (4) a link to centralized business services available from the Secretary of State, the Department of Labor, the Department of Taxes, and others; and (5) agency contacts and links for available services and resources. (b) Administration. On or before June 30, 2015, the Secretary of State, Department of Taxes, Department of Labor, the Vermont Attorney General, the Agency of Commerce and Community Development, and the Agency of Administration shall coordinate with other relevant agencies and departments within State government and outside partners, including regional development corporations, regional planning commissions, and small business development centers, to provide comprehensive business services, regional coaching teams, print materials, other outreach, and a One-Stop Shop website, consistent with the following timeline: (1) Phase 1. Complete necessary partner outreach and collaboration and an inventory of existing websites, determine the appropriate content to be included on the One-Stop website, and update current websites to include links to State agencies and departments with regulatory oversight and authority over Vermont businesses. S.220 As Passed Senate Sec. 1. ONE STOP SHOP WEB PORTAL (a) In order to simplify the process for business creation and growth, the Office of the Secretary of State, Department of Taxes, Department of Labor, the Vermont Attorney General, the Agency of Commerce and Community Development, and the Agency of Administration have formed a Business Portal Committee to create an online one-stop shop for business registration, business entity creation, and registration compliance. (b) On or before January 15, 2015, the Business Portal Committee shall report to the Senate Committee on Economic Development, Housing and General Affairs and the House Committee on Commerce and Economic Development to inform the committees of the status of the project and a timeline for its completion.

2 Vermont Entrepreneurial Lending Program (2) Phase 2. Edit and organize the content to be included on the One-Stop website. (3) Phase 3. Complete the design and mapping of the One-Stop website. (4) Phase 4. Complete a communications and outreach plan with a final funding proposal for the project. Sec V.S.A. chapter 12 is amended to read: CHAPTER 12. VERMONT ECONOMIC DEVELOPMENT AUTHORITY * * * Subchapter 12. Technology Loan Vermont Entrepreneurial Lending Program 280aa. FINDINGS AND PURPOSE (a)(1) Technology-based companies Vermont-based businesses in seed, start-up, and growth-stages are a vital source of innovation, employment, and economic growth in Vermont. The continued development and success of this increasingly important sector of Vermont s economy these businesses is dependent upon the availability of flexible, risk-based capital. (2) Because the primary assets of technology-based companies sometimes Vermont-based businesses in seed, start-up, and growth-stages often consist almost entirely of intellectual property or insufficient tangible assets to support conventional lending, such these companies frequently do may not have access to conventional means of raising capital, such as asset-based bank financing. (b) To support the growth of technology-based companies Vermontbased businesses in seed, start-up, and growth-stages and the resultant creation of high-wage higher wage employment in Vermont, a technology loan program is established under this subchapter the General Assembly hereby creates in this subchapter the Vermont Entrepreneurial Lending Program to support the growth and development of seed, start-up, and growth-stage businesses. Sec V.S.A. chapter 12 is amended to read: CHAPTER 12. VERMONT ECONOMIC DEVELOPMENT AUTHORITY * * * Subchapter 12. Technology Loan Vermont Entrepreneurial Lending Program 280aa. FINDINGS AND PURPOSE (a)(1) Technology-based companies Vermont-based seed, start-up, and early growth-stage businesses are a vital source of innovation, employment, and economic growth in Vermont. The continued development and success of this increasingly important sector of Vermont s economy these businesses is dependent upon the availability of flexible, risk-based capital. (2) Because the primary assets of technology-based companies sometimes seed, start-up, and early growth-stage businesses often consist almost entirely of intellectual property or insufficient tangible assets to support conventional lending, such these companies frequently do not have access to conventional means of raising capital, such as asset-based bank financing. (b) To support the growth of technology-based companies seed, start-up, and early growth-stage businesses and the resultant creation of high-wage employment in Vermont, a technology loan program is established under this subchapter the General Assembly hereby creates in this subchapter the Vermont Entrepreneurial Lending Program to support the growth and development of seed, start-up, and early growth-stage businesses.

3 280bb. TECHNOLOGY LOAN VERMONT ENTREPRENEURIAL LENDING PROGRAM (a) There is created a technology (TECH) loan program the Vermont Entrepreneurial Lending Program to be administered by the Vermont economic development authority Economic Development Authority. The program Program shall seek to meet the working capital and capital-asset financing needs of technology-based companies start-up, early stage, and growth-stage businesses in Vermont. The Program shall specifically seek to fulfill capital requirement needs that are unmet in Vermont, including: (1) loans up to $100, to manufacturing businesses and software developers with innovative products that typically reflect longterm, organic growth; (2) loans from $250, through $1,000, in growth-stage companies who do not meet the underwriting criteria of other public and private entrepreneurial financing sources; and (3) loans to businesses that are unable to access adequate capital resources because the primary assets of these businesses are typically intellectual property or similar nontangible assets. (b) The economic development authority Authority shall establish such adopt regulations, policies, and procedures for the program Program as are necessary to carry out the purposes of this subchapter. The authority s lending criteria shall include consideration of in-state competition and whether a company has made reasonable efforts to secure capital in the private sector increase the amount of investment funds available to Vermont businesses whose capital requirements are not being met by conventional lending sources. (c) When considering entrepreneurial lending through the Program, the Authority shall give additional consideration and weight to an application of a business whose business model and practices will have a demonstrable effect in achieving other public policy goals of the State, including: (1) The business will create jobs in strategic sectors such as the knowledge-based economy, renewable energy, advanced manufacturing, wood products manufacturing, and value-added agricultural processing. 280bb. TECHNOLOGY LOAN VERMONT ENTREPRENEURIAL LENDING PROGRAM (a) There is created a technology (TECH) loan program the Vermont Entrepreneurial Lending Program to be administered by the Vermont economic development authority Economic Development Authority. The program Program shall seek to meet the working capital and capital-asset financing needs of technology-based companies start-up, early stage, and early growth-stage businesses in Vermont. The Program shall specifically seek to fulfill capital requirement needs that are unmet in Vermont, including: (1) loans up to $100, for manufacturing businesses with innovative products that typically reflect long-term growth; (2) loans from $250, through $1,000, to early growth-stage companies who do not meet the current underwriting criteria of other public and private lending institutions; and (3) loans to businesses that are unable to access adequate capital resources because the primary assets of these businesses are typically intellectual property or similar nontangible assets. (b) The economic development authority Authority shall establish such adopt regulations, policies, and procedures for the program Program as are necessary to carry out the purposes of this subchapter. The authority s lending criteria shall include consideration of in-state competition and whether a company has made reasonable efforts to secure capital in the private sector increase the amount of investment funds available to Vermont businesses whose capital requirements are not being met by conventional lending sources. (c) When considering entrepreneurial lending through the Program, the Authority shall give additional consideration and weight to an application of a business whose business model and practices will have a demonstrable effect in achieving other public policy goals of the State, including: (1) The business will create jobs in strategic sectors such as the knowledge-based economy, renewable energy, advanced manufacturing, wood products manufacturing, and value-added agricultural processing.

4 Vermont Entrepreneurial Lending Program - Capitalization Vermont Agricultural Credit (2) The business is located in a designated downtown, village center, growth center, industrial park, or other significant geographic location recognized by the State. (3) The business adopts energy and thermal efficiency practices in its operations or otherwise operates in a way that reflects a commitment to green energy principles. (4) The business will create jobs that pay a livable wage and significant benefits to Vermont employees (d) The Authority shall include provisions in the terms of an loan made under the Program to ensure that a loan recipient shall maintain operations within the State for a minimum of five years from the date on which the recipient receives the loan funds from the Authority or shall otherwise be required to repay the outstanding funds in full. * * * Sec. 3. VERMONT ENTREPRENEURIAL LENDING PROGRAM; LOAN LOSS RESERVE FUNDS; CAPITALIZATION; PRIVATE CAPITAL; APPROPRIATION (a) The Vermont Economic Development Authority shall capitalize loan loss reserves for the Vermont Entrepreneurial Lending Program created in 10 V.S.A. 280bb with the following funding from the following sources: (1) up to $1,000, to the Program from Authority funds or eligible federal funds currently administered by the Authority; and (2) the amount of $1,000, appropriated in fiscal year 2015 from the General Fund to the Authority for the purposes of this section. (b) The Authority shall use the funds in subsection (a) of this section solely for the purpose of establishing and maintaining loan loss reserves to guarantee loans made pursuant to 10 V.S.A. 280bb. Sec V.S.A. chapter 16A is amended to read: CHAPTER 16A. VERMONT AGRICULTURAL CREDIT PROGRAM (2) The business is located in a designated downtown, village center, growth center, or other significant geographic location recognized by the State. (3) The business adopts energy and thermal efficiency practices in its operations or otherwise operates in a way that reflects a commitment to green energy principles. (4) The business will create jobs that pay a livable wage and significant benefits to Vermont employees. (d) The Authority shall include provisions in the terms of an entrepreneurial loan made under the Program to ensure that an entrepreneurial loan recipient shall maintain operations within the State for a minimum of five years from the date on which the recipient receives the entrepreneurial loan funds from the Authority. * * * Sec. 3. VERMONT ENTREPRENEURIAL LENDING PROGRAM; LOAN LOSS RESERVE FUNDS; CAPITALIZATION; PRIVATE CAPITAL; APPROPRIATION (a) The Vermont Economic Development Authority shall capitalize loan loss reserves for the Vermont Entrepreneurial Lending Program created in 10 V.S.A. 280bb with up to $1,000, from Authority funds or eligible federal funds currently administered by the Authority. (b) The Vermont Economic Development Authority shall use the funds allocated to the Program, as referenced in subsection (a) of this section, solely for the purpose of establishing and maintaining loan loss reserves to guarantee entrepreneurial loans.

5 Program; addition of forestry and forest products 374a. CREATION OF THE VERMONT AGRICULTURAL CREDIT PROGRAM * * * (b) No borrower shall be approved for a loan from the corporation that would result in the aggregate principal balances outstanding of all loans to that borrower exceeding the then-current maximum Farm Service Agency loan guarantee limits, or $2,000,000.00, whichever is greater. 374b. DEFINITIONS As used in this chapter: (1) Agricultural facility means land and rights in land, buildings, structures, machinery, and equipment which is used for, or will be used for producing, processing, preparing, packaging, storing, distributing, marketing, or transporting agricultural products which have been primarily produced in this state State, and working capital reasonably required to operate an agricultural facility. (2) Agricultural land means real estate capable of supporting commercial farming or forestry, or both. (3) Agricultural products mean crops, livestock, forest products, and other farm or forest commodities produced as a result of farming or forestry activities. (4) Farm ownership loan means a loan to acquire or enlarge a farm or agricultural facility, to make capital improvements including construction, purchase, and improvement of farm and agricultural facility buildings that can be made fixtures to the real estate, to promote soil and water conservation and protection, and to refinance indebtedness incurred for farm ownership or operating loan purposes, or both. (5) Authority means the Vermont economic development authority Economic Development Authority. (6) Cash flow means, on an annual basis, all income, receipts, and revenues of the applicant or borrower from all sources and all expenses of the applicant or borrower, including all debt service and other expenses. (7) Farmer means an individual directly engaged in the management or operation of an agricultural facility or farm operation for

6 whom the agricultural facility or farm operation constitutes two or more of the following: (A) is or is expected to become a significant source of the farmer s income; (B) the majority of the farmer s assets; and (C) an occupation in which the farmer is actively engaged in, either on a seasonal or year-round basis. (8) Farm operation shall mean the cultivation of land or other uses of land for the production of food, fiber, horticultural, silvicultural, orchard, maple syrup, Christmas trees, forest products, or forest crops; the raising, boarding, and training of equines, and the raising of livestock; or any combination of the foregoing activities. Farm operation also includes the storage, preparation, retail sale, and transportation of agricultural or forest commodities accessory to the cultivation or use of such land. * * * Connecting Capital Providers and Entrepreneurs Sec. 5. NETWORKING INITIATIVES; APPROPRIATION (a) The Agency of Commerce and Community Development shall support networking events offered by one or more regional economic development providers designed to connect capital providers with one another or with Vermont entrepreneurs, or both, and shall take steps to facilitate outreach and matchmaking opportunities between investors and entrepreneurs. (b) The Agency shall submit to the House Committee on Commerce and Economic Development and to the Senate Committee on Economic Development, Housing and General Affairs: (1) a status report on or before January 15, 2015 concerning the structure of networking initiatives, the relevant provisions of governing performance contracts, and the benchmarks and measures of performance; and (2) a report on or before December 15, 2015 concerning the outcomes of and further recommendations for the program.

7 Downtown Tax Credits Sec V.S.A. chapter 151, subchapter 11J is amended to read: Subchapter 11J. Vermont Downtown and Village Center Tax Credit Program 5930aa. DEFINITIONS As used in this subchapter: * * * (3) Qualified code or technology improvement project means a project: (A)(i) To to install or improve platform lifts suitable for transporting personal mobility devices, elevators, sprinkler systems, and capital improvements in a qualified building, and the installations or improvements are required to bring the building into compliance with the statutory requirements and rules regarding fire prevention, life safety, and electrical, plumbing, heating, ventilating, or cooling systems and accessibility codes as determined by the department of public safety. Department of Public Safety; or (ii) to install or improve data or network wiring, or heating, ventilating, or cooling systems in a qualified building, provided that a professional engineer licensed under 26 V.S.A. chapter 20 certifies as to the fact and cost of the installation or improvement; (B) To to abate lead paint conditions or other substances hazardous to human health or safety in a qualified building.; or (C) To to redevelop a contaminated property in a designated downtown or village center under a plan approved by the Secretary of Natural Resources pursuant to 10 V.S.A. 6615a. (4) Qualified expenditures means construction-related expenses of the taxpayer directly related to the project for which the tax credit is sought but excluding any expenses related to a private residence. (5) Qualified façade improvement project means the rehabilitation of the façade of a qualified building that contributes to the integrity of the designated downtown or designated village center. Façade improvements to qualified buildings listed, or eligible for listing, in the State or National Register of Historic Places must be consistent with Secretary of the Interior

8 Standards, as determined by the Vermont Division for Historic Preservation. (6) Qualified historic rehabilitation project means an historic rehabilitation project that has received federal certification for the rehabilitation project. (7) Qualified project means a qualified code or technology improvement, qualified façade improvement, qualified technology infrastructure project, or qualified historic rehabilitation project as defined by this subchapter. (8) State Board means the Vermont Downtown Development Board established pursuant to 24 V.S.A. chapter 76A. 5930bb. ELIGIBILITY AND ADMINISTRATION (a) Qualified applicants may apply to the State Board to obtain the tax credits provided by this subchapter for qualified code improvement, façade improvement, or historic rehabilitation projects a qualified project at any time before one year after completion of the qualified project. (b) To qualify for any of the tax credits under this subchapter, expenditures for the qualified project must exceed $5, (c) Application shall be made in accordance with the guidelines set by the State Board. (d) Notwithstanding any other provision of this subchapter, qualified applicants may apply to the State Board at any time prior to June 30, 2013 to obtain a tax credit not otherwise available under subsections 5930cc(a)- (c) of this title of 10 percent of qualified expenditures resulting from damage caused by a federally declared disaster in Vermont in The credit shall only be claimed against the taxpayer s State individual income tax under section 5822 of this title. To the extent that any allocated tax credit exceeds the taxpayer s tax liability for the first tax year in which the qualified project is completed, the taxpayer shall receive a refund equal to the unused portion of the tax credit. If within two years after the date of the credit allocation no claim for a tax credit or refund has been filed, the tax credit allocation shall be rescinded and recaptured pursuant to subdivision 5930ee(6) of this title. The total amount of tax credits

9 available under this subsection shall not be more than $500, and shall not be subject to the limitations contained in subdivision 5930ee(2) of this subchapter. 5930cc. DOWNTOWN AND VILLAGE CENTER PROGRAM TAX CREDITS (a) Historic rehabilitation tax credit. The qualified applicant of a qualified historic rehabilitation project shall be entitled, upon the approval of the State Board, to claim against the taxpayer s state State individual income tax, corporate income tax, or bank franchise or insurance premiums tax liability a credit of 10 percent of qualified rehabilitation expenditures as defined in the Internal Revenue Code, 26 U.S.C. 47(c), properly chargeable to the federally certified rehabilitation. (b) Façade improvement tax credit. The qualified applicant of a qualified façade improvement project shall be entitled, upon the approval of the State Board, to claim against the taxpayer s State individual income tax, state State corporate income tax, or bank franchise or insurance premiums tax liability a credit of 25 percent of qualified expenditures up to a maximum tax credit of $25, (c) Code improvement tax credit. The qualified applicant of a qualified code or technology improvement project shall be entitled, upon the approval of the State Board, to claim against the taxpayer s State individual income tax, State corporate income tax, or bank franchise or insurance premiums tax liability a credit of 50 percent of qualified expenditures up to a maximum tax credit of $12, for installation or improvement of a platform lift, a maximum tax credit of $50, for installation or improvement of an elevator, a maximum tax credit of $50, for installation or improvement of a sprinkler system, a maximum tax credit of $30, for the combined costs of installation or improvement of data or network wiring or a heating, ventilating, or cooling system, and a maximum tax credit of $25, for the combined costs of all other qualified code improvements. * * *

10 Electricity Rates for Businesses Sec V.S.A. 218e is added to read: 218e. BUSINESS ELECTRICITY RATES; POLICY; INVESTIGATION (a) Policy and intent. It is the policy of the State of Vermont to consider and prioritize retention and recruitment of manufacturing and other high-value businesses in the determination of orders, rules, and other decisions affecting the cost and reliability of electricity and other fuels. The intent of this policy is: (1) to encourage recruitment and retention of employers providing high quality jobs and related economic investment and to support the State s economic welfare; and (2) to seek appropriate balance between this policy and other policy goals and criteria established in this title. (b) The Commissioner of Public Service and the Secretary of Commerce and Community Development, in consultation with the Public Service Board, Associated Industries of Vermont, a cooperative electric company, a shareholder-owned utility, VPPSA, and VELCO, shall conduct an investigation of how best to advance the public good through consideration of the competitiveness of Vermont s industrial or manufacturing businesses with regard to electricity costs. As used in this section, industrial or manufacturing business means a business engaged in one or more of the activities classified under North American Industry Classification System (NAICS) Sector (c) In conducting the investigation required by this section, the Commissioner and Secretary shall consider: (1) how best to incorporate into rate design proceedings the impact of electricity costs on business competitiveness and the identification of the costs of service incurred by businesses; (2) with regard to the energy efficiency programs established under section 209 of this title, potential changes to their delivery, funding, financing, and participation requirements; Sec. 5. COMMISSIONER OF PUBLIC SERVICE STUDY; BUSINESS ELECTRICITY RATES (a) The Commissioner of Public Service, in consultation with the Public Service Board and the Secretary of Commerce and Community Development, shall conduct a study of how best to advance the public good through consideration of the competitiveness of Vermont s energy-intensive businesses with regard to electricity costs. As used in this section, energy-intensive business or business means a manufacturer, a business that uses 1,000 MWh or more of electricity per year, or a business that meets another energy threshold deemed more appropriate by the Commissioner. (b) In conducting the study required by this section, the Commissioner shall consider: (1) how best to incorporate into rate design proceedings the impact of electricity costs on business competitiveness and the identification of the costs of service incurred by businesses; (2) with regard to the energy efficiency programs established under 30 V.S.A. 209, potential changes to their delivery, funding, financing, and participation requirements;

11 Domestic Export Program (3) the history and outcome of any evaluations of the Energy Savings Account or Customer Credit programs, as well as best practices for customer self-directed energy efficiency programs; (4) the history and outcome of any evaluations of retail choice programs or policies, as relate to business competitiveness, that have been undertaken in Vermont and in other jurisdictions; (5) any other programs or policies the Board deems relevant; and (6) whether and to what extent any programs or policies considered by the Board under this section would impose cost shifts onto other customers, result in stranded costs (costs that cannot be recovered by a regulated utility due to a change in regulatory structure or policy), or conflict with renewable energy requirements in Vermont and, if so, whether such programs or policies would nonetheless promote the public good. (d) In conducting the investigation required by this section, the Commissioner and Secretary shall provide the following persons and entities an opportunity for written and oral comments: (1) consumer and business advocacy groups; (2) regional development corporations; and (3) any other person or entity as determined by the Commissioner and Secretary. (e) On or before December 15, 2014, the Commissioner and Secretary shall provide a status report to the General Assembly of its findings and recommendations regarding regulatory or statutory changes that would reduce energy costs for Vermont businesses and promote the public good. On or before December 15, 2015, the Commissioner and Secretary shall provide a final report to the General Assembly of such findings and recommendations. Sec. 8. DOMESTIC MARKET ACCESS PROGRAM FOR VERMONT AGRICULTURE AND FOREST PRODUCTS (a) The Secretary of Agriculture, Food and Markets, in collaboration with the Agency of Commerce and Community Development and the (3) the history and outcome of any evaluations of the Energy Savings Account or Customer Credit programs, as well as best practices for customer self-directed energy efficiency programs; (4) the history and outcome of any evaluations of retail choice programs or policies, as they relate to business competitiveness, that have been undertaken in Vermont and in other jurisdictions; (5) any other programs or policies the Commissioner deems relevant; and (6) whether and to what extent any programs or policies considered by the Commissioner under this section would impose cost shifts onto other customers, result in stranded costs (costs that cannot be recovered by a regulated utility due to a change in regulatory structure or policy), or conflict with renewable energy requirements in Vermont. (c) In conducting the study required by this section, the Commissioner shall provide the following persons and entities an opportunity for written and oral comments: (1) consumer and business advocacy groups; (2) regional development corporations; and (3) any other person or entity as determined by the Commissioner. (d) On or before December 15, 2014, the Commissioner shall provide a status report to the General Assembly of his or her findings regarding regulatory or statutory changes that would reduce electric energy costs for Vermont businesses and promote the public good. On or before December 15, 2015, the Commissioner shall provide a final report to the General Assembly of such findings and recommendations. Sec. 6. DOMESTIC MARKET ACCESS PROGRAM FOR VERMONT AGRICULTURE AND FOREST PRODUCTS The Secretary of Agriculture, Food and Markets, in collaboration with the Agency of

12 Penalties for Computer Crimes Chief Marketing Officer, shall create a Domestic Export Program Pilot Project within the Made in Vermont designation program, the purpose of which shall be to: (1) connect Vermont producers with brokers, buyers, and distributors in other U.S. state and regional markets, (2) provide technical and marketing assistance to Vermont producers to convert these connections into increased sales and sustainable commercial relationships; and (3) provide one-time matching grants of up to $2, per business to attend trade shows and similar events to expand producers market presence in other U.S. states. (b) There is appropriated in Fiscal Year 2015 from the General Fund to the Agency of Agriculture, Food and Markets the amount of $75, to implement the provisions of this section. (c) The Secretary shall collect data on the activities and outcomes of the pilot project authorized under this section and shall report his or her findings and recommendations for further action on or before January 15, 2015, to the House Committees on Agriculture and on Commerce and Economic Development and to the Senate Committees on Agriculture and on Economic Development, Housing and General Affairs. Sec V.S.A. chapter 87 is amended to read: CHAPTER 87. COMPUTER CRIMES * * * ALTERATION, DAMAGE, OR INTERFERENCE (a) A person shall not intentionally and without lawful authority, alter, damage, or interfere with the operation of any computer, computer system, computer network, computer software, computer program, or data contained in such computer, computer system, computer program, or computer network. (b) Penalties. A person convicted of violating this section shall be: (1) if the damage or loss does not exceed $ for a first offense, imprisoned not more than one year or fined not more than $ $5,000.00, or both; Commerce and Community Development and the Chief Marketing Officer, may create a Domestic Export Program Pilot Project within the Made in Vermont designation program, the purpose of which shall be to connect Vermont producers with brokers, buyers, and distributors in other U.S. state and regional markets, and to provide technical and marketing assistance to Vermont producers to convert these connections into increased sales and sustainable commercial relationships. Sec V.S.A. chapter 87 is amended to read: CHAPTER 87. COMPUTER CRIMES * * * ALTERATION, DAMAGE, OR INTERFERENCE (a) A person shall not intentionally and without lawful authority, alter, damage, or interfere with the operation of any computer, computer system, computer network, computer software, computer program, or data contained in such computer, computer system, computer program, or computer network. (b) Penalties. A person convicted of violating this section shall be: (1) if the damage or loss does not exceed $ for a first offense, imprisoned not more than one year or fined not more than $ $5,000.00, or both; (2) if the damage or loss does not exceed $ for a second or subsequent offense, imprisoned not more than two years or fined not more than $1,000.00

13 (2) if the damage or loss does not exceed $ for a second or subsequent offense, imprisoned not more than two years or fined not more than $1, $10,000.00, or both; or (3) if the damage or loss exceeds $500.00, imprisoned not more than 10 years or fined not more than $10, $25,000.00, or both THEFT OR DESTRUCTION (a)(1) A person shall not intentionally and without claim of right deprive the owner of possession, take, transfer, copy, conceal, or retain possession of, or intentionally and without lawful authority, destroy any computer system, computer network, computer software, computer program, or data contained in such computer, computer system, computer program, or computer network. (2) Copying a commercially available computer program or computer software is not a crime under this section, provided that the computer program and computer software has a retail value of $ or less and is not copied for resale. (b) Penalties. A person convicted of violating this section shall be: (1) if the damage or loss does not exceed $ for a first offense, imprisoned not more than one year or fined not more than $ $5,000.00, or both; (2) if the damage or loss does not exceed $ for a second or subsequent offense, imprisoned not more than two years or fined not more than $1, $10,000.00, or both; or (3) if the damage or loss exceeds $500.00, imprisoned not more than 10 years or fined not more than $10, $25,000.00, or both CIVIL LIABILITY A person damaged as a result of a violation of this chapter may bring a civil action against the violator for damages, costs and fees including reasonable attorney s fees, and such other relief as the court deems appropriate. * * * $10,000.00, or both; or (3) if the damage or loss exceeds $500.00, imprisoned not more than 10 years or fined not more than $10, $100,000.00, or both THEFT OR DESTRUCTION (a)(1) A person shall not intentionally and without claim of right deprive the owner of possession, take, transfer, copy, conceal, or retain possession of, or intentionally and without lawful authority, destroy any computer system, computer network, computer software, computer program, or data contained in such computer, computer system, computer program, or computer network. (2) Copying a commercially available computer program or computer software is not a crime under this section, provided that the computer program and computer software has a retail value of $ or less and is not copied for resale. (b) Penalties. A person convicted of violating this section shall be: (1) if the damage or loss does not exceed $ for a first offense, imprisoned not more than one year or fined not more than $ $5,000.00, or both; (2) if the damage or loss does not exceed $ for a second or subsequent offense, imprisoned not more than two years or fined not more than $1, $10,000.00, or both; or (3) if the damage or loss exceeds $500.00, imprisoned not more than 10 years or fined not more than $10, $100,000.00, or both CIVIL LIABILITY A person damaged as a result of a violation of this chapter may bring a civil action against the violator for damages, costs, and fees, including reasonable attorney s fees, and such other relief as the court deems appropriate. * * *

14 Statute of Limitations for Misappropriation of Trade Secrets Protection of Trade Secrets Sec V.S.A. 523 is amended to read: 523. TRADE SECRETS An action for misappropriation of trade secrets under 9 V.S.A. chapter 143 of Title 9 shall be commenced within three years after the cause of action accrues, and not after. The cause of action shall be deemed to accrue as of the date the misappropriation was discovered or reasonably should have been discovered. Sec V.S.A. chapter 143 is amended to read: CHAPTER 143. TRADE SECRETS DEFINITIONS As used in this chapter: (1) Improper means includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means. (2) Misappropriation means: (A) acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or (B) disclosure or use of a trade secret of another without express or implied consent by a person who: (i) used improper means to acquire knowledge of the trade secret; or (ii) at the time of disclosure or use, knew or had reason to know that his or her knowledge of the trade secret was: (I) derived from or through a person who had utilized improper means to acquire it; (II) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or (III) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or (iii) before a material change of his or her position, knew or had reason to know that it was a trade secret and that knowledge of it had Sec V.S.A. 523 is amended to read: 523. TRADE SECRETS An action for misappropriation of trade secrets under 9 V.S.A. chapter 143 of Title 9 shall be commenced within three five years after the cause of action accrues, and not after. The cause of action shall be deemed to accrue as of the date the misappropriation was discovered or reasonably should have been discovered. Sec V.S.A. chapter 143 is amended to read: CHAPTER 143. TRADE SECRETS DEFINITIONS As used in this chapter: (1) Improper means includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means. (2) Misappropriation means: (A) acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or (B) disclosure or use of a trade secret of another without express or implied consent by a person who: (i) used improper means to acquire knowledge of the trade secret; or (ii) at the time of disclosure or use, knew or had reason to know that his or her knowledge of the trade secret was: (I) derived from or through a person who had utilized improper means to acquire it; (II) acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or (III) derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or (iii) before a material change of his or her position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.

15 been acquired by accident or mistake. (3) Trade secret means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (A) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy INJUNCTIVE RELIEF (a) Actual A court may enjoin actual or threatened misappropriation may be enjoined of a trade secret. Upon application to the court, an injunction shall be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time in order to eliminate commercial advantage that otherwise would be derived from the misappropriation. (b) In exceptional circumstances, an injunction may condition future use upon payment of a reasonable royalty for no longer than the period of time for which use could have been prohibited. Exceptional circumstances include, but are not limited to, a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation that renders a prohibitive injunction inequitable. (c) In appropriate circumstances, affirmative acts to protect a trade secret may be compelled by court order. (3) Trade secret means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (A) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy INJUNCTIVE RELIEF (a) Actual A court may enjoin actual or threatened misappropriation may be enjoined of a trade secret. Upon application to the court, an injunction shall be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time in order to eliminate commercial advantage that otherwise would be derived from the misappropriation. (b) In exceptional circumstances, an injunction may condition future use upon payment of a reasonable royalty for no longer than the period of time for which use could have been prohibited. Exceptional circumstances include, but are not limited to, a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation that renders a prohibitive injunction inequitable. (c) In appropriate circumstances, affirmative acts to protect a trade secret may be compelled by court order DAMAGES (a)(1) Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable, a complainant is entitled to recover damages for misappropriation. (2) Damages can include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation DAMAGES

16 that is not taken into account in computing actual loss. (3) In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator s unauthorized disclosure or use of a trade secret. (4) A court shall award a substantially prevailing party his or her costs and fees, including reasonable attorney s fees, in an action brought pursuant to this chapter. (b) If malicious misappropriation exists, the court may award punitive damages PRESERVATION OF SECRECY In an action under this chapter, a court shall preserve the secrecy of an alleged trade secret by reasonable means, which may include granting protective orders in connection with discovery proceedings, holding incamera hearings, sealing the records of the action, and ordering any person involved in the litigation not to disclose an alleged trade secret without prior court approval EFFECT ON OTHER LAW (a) Except as provided in subsection (b) of this section, this chapter displaces conflicting tort, restitutionary, and any other law of this state providing civil remedies for misappropriation of a trade secret. (b) This chapter does not affect: (1) contractual remedies, whether or not based upon misappropriation of a trade secret; (2) other civil remedies that are not based upon misappropriation of a trade secret; or (3) criminal remedies, whether or not based upon misappropriation of a trade secret. * * * (a)(1) Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable, a complainant is entitled to recover damages for misappropriation. (2) Damages can include both the actual loss caused by misappropriation and the unjust enrichment caused by misappropriation that is not taken into account in computing actual loss. (3) In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator s unauthorized disclosure or use of a trade secret. (4) A court shall award a successful complainant his or her costs and fees, including reasonable attorney s fees, arising from a misappropriation of the complainant s trade secret. (b) If malicious misappropriation exists, the court may award punitive damages PRESERVATION OF SECRECY In an action under this chapter, a court shall preserve the secrecy of an alleged trade secret by reasonable means, which may include granting protective orders in connection with discovery proceedings, holding in-camera hearings, sealing the records of the action, and ordering any person involved in the litigation not to disclose an alleged trade secret without prior court approval EFFECT ON OTHER LAW (a) Except as provided in subsection (b) of this section, this chapter displaces conflicting tort, restitutionary, and any other law of this state State providing civil remedies for misappropriation of a trade secret. (b) This chapter does not affect: (1) contractual remedies, whether or not based upon misappropriation of a trade secret; (2) other civil remedies that are not based upon misappropriation of a trade secret; or (3) criminal remedies, whether or not based upon misappropriation of a trade secret.

17 State Contracting; Intellectual Property, Etc. Study: Small Business Access to Capital Sec V.S.A. 346 is added to read: 346. STATE CONTRACTING; INTELLECTUAL PROPERTY, SOFTWARE DESIGN, AND INFORMATION TECHNOLOGY (a) The Secretary of Administration shall include in Administrative Bulletin 3.5 a policy direction applicable to State procurement contracts that include services for the development of software applications, computer coding, or other intellectual property, which would allow the State of Vermont to grant permission to the contractor to use the intellectual property created under the contract for the contractor s commercial purposes. (b) The Secretary may recommend contract provisions that authorize the State to negotiate with a contractor to secure license terms and license fees, royalty rights, or other payment mechanism for the contractor s commercial use of intellectual property developed under a State contract. (c) If the Secretary authorizes a contractor to own intellectual property developed under a State contract, the Secretary may recommend language to ensure the State retains a perpetual, irrevocable, royalty-free, and fully paid right to continue to use the intellectual property. Sec. 13. SMALL BUSINESS ACCESS TO CAPITAL (a) Crowdfunding Study. The Department of Financial Regulation shall study the opportunities and limitations for crowdfunding to increase access to capital for Vermont s small businesses. On or before January 15, 2015, the Department shall report its findings and recommendations to the House Committee on Commerce and Economic Development and the Senate Committee on Economic Development, Housing and General Affairs. (b) Small business issuer education and outreach. On or before January 15, 2015, the Department of Financial Regulation shall conduct at least two educational events to inform the legal, small business, and investor communities and other interested parties, of opportunities for small * * * Sec V.S.A. 346 is added to read: 346. STATE CONTRACTING; INTELLECTUAL PROPERTY, SOFTWARE DESIGN, AND INFORMATION TECHNOLOGY (a) The Secretary of Administration shall include in Administrative Bulletin 3.5 a policy direction applicable to State procurement contracts that include services for the development of software applications, computer coding, or other intellectual property, which would allow the State of Vermont to grant permission to the contractor to use the intellectual property created under the contract for the contractor s commercial purposes. (b) The Secretary may recommend contract provisions that authorize the State to negotiate with a contractor to secure license terms and license fees, royalty rights, or other payment mechanism for the contractor s commercial use of intellectual property developed under a State contract. (c) If the Secretary authorizes a contractor to own intellectual property developed under a State contract, the Secretary shall recommend language to ensure the State retains a perpetual, irrevocable, royalty-free, and fully paid right to continue to use the intellectual property.

18 Study: Commercial Lenders Fiscal Analysis: Economic Development Legislative Proposals businesses to access capital in Vermont, including, the Vermont Small Business Offering Exemption regulation and other securities registration exemptions. (c) Vermont Small Business Offering Exemption. The Commissioner of Financial Regulation shall exercise his or her rulemaking authority under 9 V.S.A. chapter 150 to review and revise the Vermont Small Business Offering Exemption and any other state securities exemptions, specifically including those designed to complement exemptions from federal registration requirements available under Regulation D, in order to recognize and reflect the evolution of capital markets and to ensure that Vermont remains current and competitive in its securities regulations, particularly with respect to access to capital for small businesses. Sec. 14; identical to Senate provision Sec V.S.A. 23 is added to read: 23. FISCAL ANALYSIS OF ECONOMIC DEVELOPMENT BILLS (a) Upon the written request of a majority of the members of a standing committee of the General Assembly to the Joint Fiscal Committee, the legislative Joint Fiscal Office shall perform an econometric analysis and prepare a fiscal note for a legislative proposal that is directly related to economic development and would substantially affect the expenditures or revenues of the State. (b) Each fiscal note prepared pursuant to this section shall contain an estimate of the positive and negative effects of the proposal upon the Sec. 12. STUDY; DEPARTMENT OF FINANCIAL REGULATION; LICENSED LENDER REQUIREMENTS; COMMERCIAL LENDERS On or before January 15, 2015, the Department of Financial Regulation shall evaluate and report to the House Committee on Commerce and Economic Development and to the Senate Committees on Finance and on Economic Development, Housing and General Affairs any statutory and regulatory changes to the State s licensed lender requirements that are necessary to open private capital markets and remove unnecessary barriers to business investment in Vermont.

19 expenditures or revenues of the State, and upon employment in the State, for the fiscal year in which the bill would become effective if enacted and for the next five succeeding years. (c)(1) For a request submitted pursuant to subsection (a) of this section on or before May 15, the Joint Fiscal Office shall conduct its analysis and submit its report to the requesting committee on or before December 15 of the same year. (2) A request submitted after May 15 may be approved or denied by majority vote of the Joint Fiscal Committee in its sole discretion. Upon approval of such request, the Joint Fiscal Committee shall determine the timeframe for an analysis and the delivery date of a report from the Joint Fiscal Office. (d) In the even the Joint Fiscal Committee receives one or more requests pursuant to this section and the Committee determines the scope of the request or requests would impose an undue burden on the available resources of the Joint Fiscal Office, the Committee shall have the discretion to assign relative priority to the requests and establish a timeframe for an analysis and the delivery date of any reports from the Joint Fiscal Office. Sec V.S.A. 503 is amended to read: 503. FUNCTIONS (a) The joint fiscal committee Joint Fiscal Committee shall direct, supervise, and coordinate the work of its staff and secretaries. (b) The joint fiscal committee Joint Fiscal Committee shall: (1) Furnish furnish research services and secretarial services of a fiscal nature to the committees on appropriations Committees on Appropriations, the senate committee on finance Senate Committee on Finance, the house committee on ways and means House Committee on Ways and Means, the committees on transportation Committees on Transportation, and the joint fiscal committee Joint Fiscal Committee; (2) Carry carry on a continuing review of the fiscal operations of the state State, including but not limited to revenues, budgeting, and expenditures;

20 (3) Accept accept grants, gifts, loans, or any other thing of value, approved by the governor, Governor under the provisions of 32 V.S.A. 5, when the general assembly General Assembly is not in session.; (4) Keep keep minutes of its meetings and maintain a file thereof; and (5) prepare fiscal notes pursuant to section 23 of this title. NEK Demographic Study Study: Tourism Funding Industrial Parks: Access to VEDA funding Sec. 21. JFO ACCD DEMOGRAPHIC STUDY The Legislative Joint Fiscal Office, in coordination with the Agency of Commerce and Community Development, shall conduct a study of demographic profiles, trends, and projections for the northeast kingdom of Vermont and shall submit its findings to the House Committee on Commerce and Community Development and the Senate Committee on Economic Development, Housing and General Affairs on or before December 1, Sec. 22; Senate provision Sec. 23; Senate provision Sec. 13. TOURISM FUNDING; PILOT PROJECT STUDY On or before January 15, 2015, the Secretary of Commerce and Community Development shall submit to the House Committee on Commerce and Economic Development and the Senate Committee on Economic Development, Housing and General Affairs a report that analyzes the results of the performance-based funding pilot project for the Department of Tourism and Marketing and recommends appropriate legislative or administrative changes to the funding mechanism for tourism and marketing programs. Sec V.S.A. 238 is added to read: 238. AVAILABILITY OF LOANS AND ASSISTANCE FOR INDUSTRIAL PARKS Notwithstanding any provision of this chapter to the contrary, the developer of a project in an industrial park permitted under chapter 151 of this title shall have access to the loans and assistance available to a local development corporation from the Vermont Economic Development Authority for the improvement of industrial parks under this subchapter.